2021 (7) TMI 1271 - HC - Indian Laws

High Court defers challenge on show cause notice, grants liberty for application citing SC judgment

The High Court deferred examining the challenge to a show cause notice pending a final order. It granted the petitioner liberty to submit an application ... Jurisdiction of respondent no. 2 to issue a show cause notice - termination of proceedings awaiting the final order - HELD THAT:- The point of Jurisdiction need not be examined at this stage, since the final order on the proceedings is awaited. The interest of justice would be sufficiently served if the petitioner is granted liberty to file an application before the respondent no. 2, to urge before such respondent that in view of the ratio of the decision in M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS [2021 (3) TMI 384 - SUPREME COURT] the proceedings cannot be carried further. If such an application is made, the respondent no. 2 will proceed to decide the same in accordance with law either by a preliminary order or by the final order in the proceedings. The writ petition stands disposed of, without costs. Issues:Challenge to show cause notice based on a recent Supreme Court judgment.Analysis:The High Court considered a writ petition challenging a show cause notice issued by the Directorate of Revenue Intelligence. The petitioner had responded to the notice and been heard, but the final order was pending. The petition contended that a recent Supreme Court judgment (Cannon India Pvt. Ltd. vs. Commissioner of Customs) affected the jurisdiction of the respondent to issue the notice. The Court decided not to examine this issue immediately, as the final order was pending. Instead, it granted the petitioner liberty to file an application before the respondent, citing the Supreme Court decision. The Court directed the respondent to consider this application and make a decision in accordance with the law. The Court emphasized that the final order on the proceedings should not be passed until the application was considered, to ensure the granted liberty was not rendered meaningless. The writ petition was disposed of without costs, and all contentions raised were left open for future consideration.